The Brazilian real sank to a new low against the dollar on Friday, taking its losses this year to 11% as the relentless selling overwhelmed the central bank's third consecutive daily market intervention to ease the pressure.
As growing fears over the coronavirus outbreak slammed markets and investor sentiment around the world, Brazil's real brushed aside the central bank's $1 billion sale of FX swaps contracts to fall through 4.51 per dollar for the first time.
Traders said local investors sold the real as a hedge against their exposure to the Brazilian stock market, and local speculators also pushed the currency lower to test the central bank's resolve.
The real traded as low as 4.5136 per dollar, and by the close of trade in Brazil on Friday it was changing hands at 4.4811 reais per dollar, a record closing low for the local currency.
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